Tagging technology waiting in the wings while retailers sort out privacy issues
By silicon.com
Published: 25 February 2005 16:25 GMT
RFID. It's a technology that has matured, at least in the mind of CIOs, from an expensive toy to a supply chain staple.
The much touted five-cents-per-tag price point has yet to materialise but it seems, aside from those who have been mandated to use the tracking, more and more companies are willing to build a business case around the tags at their current price than wait for prices to fall.
And it's precisely this attitude that means, as many analysts are now fond of saying, the issue of RFID becoming mainstream is no longer an if, but a when.
It was announced this week that adopting RFID could slash airlines' $1bn lost luggage bill and Marks and Spencer is planning to extend its RFID trials.
So, given that RFID seems to be inescapable and can save organisations a fair wad of cash by making supply chains more efficient, why isn't it ubiquitous yet?
One BT exec told silicon.com that while the technological possibilities for the use of RFID - for example, shopping trolleys that advise you on purchases - are vast, the average consumer is still "spooked" by the tracking tags and that's what holding the advent of the technology back.
But before the early-adopter brigade attempt to laugh the privacy fears out of existence, remember these privacy fears are genuine, well-grounded and, more importantly, there are laws already in place to stop companies impinging on the rights of the individuals.
Anyone thinking about the myriad marketing possibilities that could come from cross-referencing a woman's dress size - information RFID tags can easily yield - and her name and address really need to stop and think hard. They could be breaking the law and, arguably more important from the CIO's perspective, putting consumers off a useful and money-saving technology.
The EU has also woken up to this fact and has issued a consultation paper on the subject.
As the EU working party admits there are myriad possibilities for abuse of RFID, from invasive marketing to outright fraud and human tracking. It's so concerned that it's produced a series of guidelines to educate businesses on how to use RFID whilst not freaking out its customers.
Marks and Spencer's behaviour would gladden the hearts of the EU working party. The retailer is printing leaflets to explain the technology to customers, has ensured the tags attached to products are easily removed and has promised it's 'just a supply chain thing' - no cross referencing of bra sizes and customer details will go on.
It's a great example to anyone eyeing up those tiny tags.
Remember, a small proportion of consumers will love RFID. A large proportion won't care about it. And some will hate it.
And it's that last group that should be top of the agenda for any business drafting an RFID rollout plan.
If you can convince the anti-RFID campaigners your rollout plan is sound and has all the right safeguards built-in, the rest of the public will consent to the technology too.
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